Monthly Market Report
A monthly recap of asset class returns and current yields.
Data through July 31, 2023
Total Returns:
| Asset Class | Month | YTD |
|---|---|---|
| Large-Cap Stock | 3.2% | 17.0% |
| Small-Cap Stock | 5.0% | 12.8% |
| International Stock | 3.0% | 14.2% |
| Emerging Markets | 5.2% | 12.7% |
| High-Quality Bond | 0.1% | 2.5% |
| High-Yield Bond | 1.4% | 6.1% |
| Global Bond | 1.0% | 2.7% |
| Real Estate (REITs) | 2.3% | 6.8% |
Best Worst Returns. Sources and Details Below
| Morningstar Category | Month | YTD |
|---|---|---|
| AGG — 70% to 85% Equity | 2.9% | 11.7% |
| MOD — 50% to 70% Equity | 2.2% | 9.9% |
| CON — 30% to 50% Equity | 1.6% | 6.9% |
| World Allocation | 2.5% | 7.9% |
| Tactical Allocation | 2.4% | 8.9% |
Current Yields:
| Money Market Funds | 0.6% |
| S&P 500 Dividend | 1.5% |
| One-Year Bank CD | 1.6% |
| 10-Year Treasury Bond | 4.0% |
| REIT Dividend | 4.0% |
| S&P 500 Earnings | 4.8% |
| Inflation (CPI) | 4.8% |
| AA-Rated Bonds | 4.9% |
| BBB-Rated Bonds | 5.7% |
| TIPS (% + CPI) 10-yr. | 6.4% |
| High-Yield Bonds | 8.3% |
| Prime Rate | 8.50% |
| 30-Year Mortgage | 7.38% |
| Oil (barrel) | $82 |
| Gold (ounce) | $2,009 |
Data Sources and Details:
The monthly and year-to-date returns are average mutual fund returns from Morningstar. The Large-Cap Stock return is the Large Blend category return (a Blend of Growth and Value investing styles). Similarly the Small-Cap Stock return is the Small Blend return. International Stock is the Foreign Large Blend return.
The High-Quality Bond return is the return of the Intermediate Core-Plus Bond category. TIPS is the return of the Inflation-Protected Bond category. The remaining names are the same as the category names used by Morningstar. Returns are not annualized, are simple averages and exclude the impact of commission costs.
A number of yields come via wsj.com: The yield on the 10-year U.S. Treasury Bond, Prime Rate, 30-year average mortgage rate, money market funds, S&P 500 dividend yield, S&P 500 earnings yield, AA-rated and BBB-rated bonds, high-yield bonds, and gold and oil prices.
Bankrate.com provides the One-Year CD Rate which are both from their most current weekly national survey.
The Inflation figure is from the Bureau of Labor Statistics and is the rate for the trailing 12 months ending one month before our ending date. The rate we use is the Consumer Price Index for All Urban Consumers (CPI-U) excluding the volatile food and energy components. This is often referred to as the Core CPI.
The TIPS yield is for the 10-Year U.S. Treasury Inflation-Protected Securities bond quoted by the U.S. Treasury Department.
The REIT yield comes from FTSE NAREIT where we use the dividend yield on the Equity REIT Index.
Past performance is no guarantee of future results.
